You will need a brokerage account as soon as you start forex trading, and you may as well get with the best currency trading broker from the get go. Your broker is your means of access to the markets and is also your provider of leverage so that you can trade on margins and control position sizes large enough for it all to be worthwhile.

So how do you select the best forex broker? There is a lot to take into account. Here are the our top 10 points that you will certainly want to consider.

1. Funds Required

This is usually the first thing that traders look at when they are considering a currency trading broker so maybe you don’t need us to tell you, but there is a very wide range of minimum investment sizes among brokers. You will see the old style broker offering standard accounts for traders who have $10,000, $50,000 or more to invest, others with mini forex accounts which might typically require around $1,000 minimum, and micro accounts which can start around $100 or even as low as $25 in one or two cases.

You are usually best advised to go for a broker whose client base is mainly other traders with similar sized accounts to yours. That way there is a good chance that services and costs will be a good match for you.

2. Market Access

Do they provide 24 hour access to their trading platform? Most do, but you could be caught out if you make assumptions. How about support? Is that available 24 hours too, in case you have a technical problem?

3. Pairs

You will also need to check that the broker offers all the currency pairs that you are likely to want to trade. If you are a beginner, look for a broker that covers all the major pairs (USD paired with EUR, JPY, GBP, CHF, CAD and AUD) plus some cross pairs (combinations of the last six of those currencies).

4. Technical Services

You will want to look at the charts and indicators that are provided, and whether the broker includes forex news alerts. These services are less important for experienced and professional traders who probably have accounts with dedicated news and charting service providers, but a beginner can save money by choosing a broker who offers a lot here.

5. Software

Check out the broker’s software platform. Most firms offer a demonstration account so that you can test the system and services on the live market without risk. This also gives you a chance to test new systems. You may want to run in demo mode for several months, especially if you plan to test more than one system, so look for a currency trading broker who gives unlimited time on demo accounts.

6. Regulation

Look for a currency trading broker who is a member of at least one of the main regulatory bodies in their country. You cannot take this for granted because the forex market is generally not regulated by law. If you go with a completely unregulated broker there is probably nothing to stop them disappearing from the internet with all of your funds. Bodies such as the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) in the USA provide a certain amount of protection to users if the broker should suddenly fail. There are similar associations in other countries.

7. Spread

The spread is the difference between the bid and ask prices for any currency pair, and this is the broker’s edge, which is the way that most brokers make their money. The amount of the spread varies according to the broker and the currency pair, but you can expect to pay 1 to 3 pips on most of the majors. Check the spread for the main pairs that you plan to trade.

Some brokers offer a low spread but then charge fees or commission in addition. This can be advantageous for some traders, usually those who tend to make a small number of long running trades.

8. Lot Size

There are standard lot sizes which are 100,000 units of currency for a standard lot, 10,000 for a mini lot and 1,000 for a micro. However you can find variations on these from some brokers who will offer a wider choice or even fractional lots where you can make up your own lot size. Of course, you will be trading on margins so you do not need to have this amount of money in your account. See the next point.

9. Leverage

Leverage and margin requirements can be very different with different brokers. This is what gives you the power to control large sums and make (or lose) a lot of money with only a small investment. 100 times leverage is often seen as standard but 200 is possible. Some traders prefer to work with 50 times, giving lower risk.

10. Business Model

Last but not least, the broker’s business model can have a big effect on how your trades are handled. Most brokers do not have their own dealing desk but access the market through a network. You may see this referred to as an ECN or electronic communications network.

More recently, what is known as market makers have sprung up in the forex trading world. These are not brokers in the strict sense of the word. They will find a match for your trade through a network broker or sometimes they will match your trade themselves. This puts them on the other side of your trade and means that they lose if you gain … not an ideal position from your point of view, when they hold your funds. So if you go with a forex market maker be sure to check user feedback.

In fact, it is always advisable to check feedback from genuine users before signing up with a broker. Look in independent forums and try to find several points of view. Do not pay too much attention to any one individual, who may be biased in their feedback, and look for reports from users who are at the same level as you. This will help to ensure that you find the best currency trading broker for your funds.

There are many currency trading brokers on the market. The most frequently used is FXYard

Demo currency trading accounts are offered as a great free benefit by most currency trading brokers and are promoted all over in the trading world, but are they always such a big bonus? Could they be bad for your trading health? In this article we will consider demo currency trading accounts from all points of view and take their bad points along with the good.

What is a demo account?

If you have ever used an online casino you will know that most of them have two modes: real money, where you have to actually deposit funds and risk them, or fun/demo mode, where you have an imaginary account balance. They hope you will get addicted, or win a lot of imaginary money and think you are invincible, so that you will go ahead and open up a real money account.

Demo forex accounts are very similar in some ways. Brokers offer demo accounts hoping that you will try out their software platform and like it. They give you the chance to start trading and work out a profitable system without risk, on the assumption that when you decide to invest funds you will go with the platform that you have become familiar with.

From the point of view of the beginner trader, using a demo account has a lot of advantages. It gives you the chance to apply what you have read and begin trading without risk. Ideally, you will start out with or quickly develop a profitable currency trading system and a solid trading plan. You will learn to make money from forex trading, develop a cool head and move on to become a successful real money trader. However …

A demo currency trading account has one big disadvantage and strangely, that is the same as one of its advantages: the fact that it is risk free. When you are not using your own hard earned cash you are likely to open trades on feeling rather than systems, or take risks that you would not take with real money. If you are lucky and your demo trades do well, you may open a real money account with misplaced confidence, thinking that you cannot lose. Experience will sadly soon show you that you were wrong!

Demo accounts are great for experienced traders who just want to get to know a new broker’s platform before they commit to switching their account. They are also good for beginners, but only if they use them properly. You absolutely must learn to apply a trading plan consistently and with discipline before you start trading with real money. If you do not do that, a demo currency trading account may be worse than useless.

There are many Currency Trading Brokers who offers a free demo account. The most frequently used is Forex Yard

Currency day trading strategies are becoming more and more popular among both beginners and established forex traders. These strategies, similar to scalping, can be a way of making quick profits on the forex market.

In case you do not already know, there are trillions of dollars worth of currencies exchanged on the forex markets around the world every day. Traders make money by buying a currency whose value they think will rise, or selling one whose value they think will fall, always by exchanging one currency for another. After all there is no way to buy currency other than with a different currency!

The majority of traders probably take a long term position where they identify an emerging trend in price movements, open an order and then wait several days, weeks or even occasionally months before they consider that the trend is about to turn and they can close out at a profit.

Day trading, as you might guess, is very different. It involves opening and closing a trade within one day, and in fact most day traders or scalpers will close a trade in less than an hour, often just a few minutes. They go for ‘little and often’, frequent trades for a small profit each time.

Forex trading is always risky and this strategy is perhaps more risky than most. However, it has advantages for some traders. Some people like to see results fast and do not have the patience to wait out a long term trend. Others can only trade at certain times because of other commitments, and do not like to leave a trade open for the long hours that they cannot be online. Some just enjoy the rush of the successful scalper, sneaking in and out with his profits while others are still hesitating over their charts.

There are certain factors that you need to have in place in order to be successful with currency day trading.

1. As always, you will need a profitable system. Use a demo account to check that it works for you in practice before you try it out for real.

2. You need the right currency trading broker. Some brokers do not like scalpers and will close you down, especially if you make a lot of money. Check the forums and ask for recommendations from other successful day traders.

3. You need to be familiar with your charting tools and able to use them quickly. Having an analytical mind will help. Again if you are new to forex trading or changing to a new platform, you will need to work in demo mode for a while to master this.

4. You must be free of distractions during your trading time. You may only be online for a few hours each day but it must be uninterrupted time. Lock your door if necessary, close your email and switch off the cellphone.

5. You will need a cool head and a very clear trading plan. The day trader who hesitates or panics is lost.

Currency trading is a risky business and the short time scale of day trading makes it more risky than many other methods. Self discipline and complete confidence in your system are vital if you want to be successful in currency day trading.

There are also Automated Currency Day Trading software on the market. The most frequently used is

Fap Turbo – Automated Currency Trading Software